They claim that the South Korean electronics giant will unveil a “wristwatch-like smartphone” powered by Android that will go head-to-head with the new Sony SmartWatch 2, and a potentially competing product from Apple, one of Samsung’s biggest rivals.

Samsung’s event takes place two days ahead of IFA 2013 in Berlin, and we’re almost certain its main focus will be on the Galaxy Note III. But the Galaxy Gear could end up stealing some of the limelight.

“Samsung Electronics Co. will introduce a wristwatch-like device named the Galaxy Gear next month that can make phone calls, surf the Web and handle e-mails, according to two people familiar with the matter,” Bloomberg reports.

“The Galaxy Gear will be powered by Google Inc.’s Android operating system and go on sale this year to beat a potentially competing product from Apple Inc. (AAPL), the people said. The device will be unveiled Sept. 4, two days before the IFA consumer electronics show begins in Berlin, one of the people said, asking not to be identified because the plans are private.”

Sony has beaten most of its rivals to the market when it comes to modern smartwatches, but it seems consumers are most interested in what Apple and Samsung have up their sleeves.

Recent rumors have claimed that Apple will unveil an “iWatch” powered by the iOS operating system soon, and that the Cupertino company has over 100 people working on the project. Some have suggested that it will come later this year — possibly this fall alongside new iOS devices — while others expect it to arrive in 2014.

Bloomberg describes the Galaxy Gear as “a combination smartphone and tablet computer.” It’s thought that the device will connect to your Android-powered smartphone or tablet, and then allow you to view notifications, control music playback, use certain apps, and more — all from your wrist.

Watches are expected to generate more than $60 billion in sales worldwide this year, and the watch market is seen as a good opportunity for growth as the smartphone and tablet markets start to saturate.